THEORIZING GLOBALIZATION

MS. KRIZL KISH FLORIA DELIMA

THEORY
Deals with the set of ideas and theories that
will be helpful in thinking about globalization.
What will be presented below will analyze
globalization as a process that increase either
HOMOGENEITY or HETEROGENEITY.
IMPERIALISM

▪ Methods employed by one nation-state to

gain power over an area/s and then exercise
control over it.
▪ More on economic control.
Q: How it is associated to globalization?

Overtime, the nation of an empire, the process

of imperialism, came to be associated with
rulership over vast geographic spaces and the
people who lived there. Like migration, trade
and communication these process under the
heading of globalization existed between the
imperial power and the geographic areas that it
controlled.
EX. US Imperialism
 COLONIALISM

• It is related to imperialism.
• It is the creation by the colonial
power of an administration in the
area that has been colonized to
run its internal affairs.
• Almost always a consequence
of imperialism.
• It is the implanting of settlements
on distant territory (cited on
Ashcoft, Griffiths, and Tiffin 1998:
45).
COLONIALISM
Decolonization
• the process of revealing
and dismantling colonialist
power in all its forms.
• achievement of political
independence.
Neo-Colonialism
• efforts at control over the
former colonies, and other
nation-states, grew much
more indirect, subtle (e.g.
through cultural and
educational institutions)
and focused on economic
control and exploitation.
• colonialist having indirect
control
Post-Colonialism
• the era in once-
colonized areas after
the colonizing power
has departed. In recent
years, it relates to
various developments
that take place in a
former colony after the
colonizing power
departs.
• gains national identity.
 1. Issue on National Identity (esp.
the difficulty of gaining
Critical Issues in identity)
Globalization studies in 2. Negative Stereotypes
relation to Post-Colonialism: developed in the West about
those who live in the east.
Even after political independence and development has been installed and former colonies
building its national identity, there are still tentacles of control (we see it in our way of talking,
educational system standard, and standard of beauty and sexy, the way of dressing and a lot
more). In which in the purpose of decolonization as to dismantle the hidden aspects of those
institutional and cultural forces that still indirectly controlling the former colony.

Neo-Colonialism – study of Mr. Alinor S. Datumanong. Neo-colonialism is subtle because it is

insidious and harder to detect and therefore more difficult to resist and combat (since it is also
very enticing – scholarship given)

Post Colonialism – issue on National Identity (are we united as one), do we consider ourselves
as Filipinos? Look at Japan (they wont blame someone in WWII)
issue of gaining identity

Negative Stereotypes - that we are uncivilized, that we intellectually inferior, that we are exotic
(different from the rest of the world), that we are less talented, that Filipinos are the World's
slaves------------this is very clear in the history of western literature (in writings, books, poems,
articles, films/movies, etc.
Q? Where does imperialism and colonialism became
similar and where do they part from each other?

While both imperialism and colonialism involve

economic and political as well as cultural control,
imperialism is more defined by economic control
(exploitation), while colonialism is more about political
control.
Imperialism- WTO, WB, IMF – exert so much influence in our
policy making system without making colonizing us
territorially (reducing tariffs (taxes levied to foreign
products) before they will let you lend money)
MNCs – monopolization of our market thus they can set
the price they produce so high

Colonialism – Just like what the Spaniards, Americans, and

the Japanese did when they colonized our country. The
Royal Crown of Spain sent Spaniards in the Philippines
including Friars or Priest to govern the Filipinos. It started our
colonial mentality that the whiter you are, the superior you
are, the beautiful you are , the brighter you are. [make up
and way of dressing]
 DEVELOPMENT
• Historically, it preceded the global age (McMichael 2008: 21).
• It is regarded as a “PROJECT” primarily concerned with the
economic development of specific nation-states not regarded
as sufficiently developed.

Q: Is development project applicable to all nation-states?

No, as Andre Gunder Frank (1969), the developed countries were never in
the same position as less developed countries today; the developed
countries were UNDEVELOPED while the less developed countries were
UNDERDEVELOPED. The result is that the path followed by the former is not
necessarily the best one for the latter. To summarize the “one-size-fits-it all
concept (development project) is not feasible to all state.
DEVELOPMENT

 Import-Substitution  Foreign Direct Investment  Foreign Aid

(FDI )
this encompasses assistance,
as well as aid in terms of food
Countries (usually in the
Is an investment by a firm in (example, the US shipping its
South) “encouraged” to
one nation-state in a firm in excess wheat to developing
develop their own
another nation-state in order countries)
industries: instead of
producing for export, and gain control.
relying on imports from other
countries, especially the
North.
Development- USAID, AUSAID, JAPAN AID, etc. (there is no
such thing as freelunch). This became a tool for the CORE
country to remain in their place and refrain the PERIPHERY
from developing. It is like a euphemism of how to control the
development for rest of the world.

Import-Substitution –example: developing countries were

urged to develop an automobile industry to “develop”,
however, the North will also benefit this policy thousand fold.

However, the North will also benefit from Import Substitution

development by increasing Foreign Direct Investment (FDI) in
the industries that emerged in less developed countries.
The South – needs capital by borrowing or inviting the North to invest
in their country.

Foreign Aid - good in the short run but in the longer run, it often
adversely affected the ability of some countries to grow and
produce their own food (e.g wheat) and therefore led to greater
food dependency.

Dependency Theory - just like in military aspect. Underdevelopment

is not an aberrant (abnormal) condition, or one cause by the less
developed countries themselves, but it is built into development
project (as well as global capitalism). It also involves the idea that
instead of bringing economic improvement, development brings
with it greater impoverishment (poor state)
 DEPENDENCY THEORY
• Development of the nation-states of the
South contributed to a decline in their
independence and to an increase in their
dependence on the North (Cardoso and
Falleto, 1979).
• The idea of the developed countries being
independent and the less developed
countries being dependent.
Q: Is underdevelopment caused by
the less developed countries
themselves?
No, under the development project, the
developed countries, with the global
capitalist system as a tool made the
undeveloped countries underdeveloped or
less developed.
Why is it that the path followed by the developed countries
today is not necessarily the best one for the
underdeveloped countries today?

Answer: The developed countries today were

undeveloped while the less developed countries
today are “underdeveloped”.

Undeveloped – lacking in development or not developed at all

Underdeveloped – not adequately developed but on the process of being a developed on.
Andre Gunder Frank argues that behind the whole idea of development is the notion that
the present of less developed countries resembles the past of the developed countries. Thus,
if the less developed countries simply follow the same path taken by developed countries,
they too will become developed.
Were UNDEVELOPED (the developed countries today) VS UNDERDEVELOPED (the less
developed countries today)
Frank further argued that underdevelopment is a product of a capitalist system and of the
relationship between developed and underdeveloped countries within that system.

He contends that the less developed countries can only develop if they are independent of
most of these capitalist relationships, which, after all, are really the cause of their lack of
development.
 WORLD SYSTEM THEORY
• It sees the world divided mainly between
the CORE and the PERIPHERY with the
nation-states associated with the latter
being dependent on the and exploited by
the core nation-states.
Q: In analyzing using world system
theory, is development project a
success?
According to Ritzer, development project is
a failure and it did not change the system. It
is offensive because it tended to elevate
the North while demeaning the SOUTH.
PROPOSITION IN EXCHANGE TO
DEVELOPMENT PROJECT
According to Ritzer, GLOBALIZATION
PROJECT at least sounded equitable
since it was inherently multi-lateral
and multi-directional while
DEVELOPMENT PROJECT is unilateral
and undirectional, with money and
other assistance flowing from the
North to the South.
The development project was a failure
since:

1. The world today is characterized by great

inequalities (esp. economic)
2. The South did not develop to any appreciable
degree (they even fell further behind)
3. It tended to elevate the North while demeaning
everything with the South
AMERICANIZATION

• It is related to globalization, but not identical or

reducible, to it.
• Richard Kuisel (1993)- It is the import by non-
Americans of product, images, technologies,
practices and behavior that are closely
related to America (i.e.McDonalization [Ritzer
2008), Coca-Colanization (Kuisel 1993),
Disneyization (Bryman 2004) Wal-Martization
Starbuckization (Ritzer 2008)].
US Sec. Henry
Kissinger (1999), says
Q: Is America still an industrial giant? that “globalization is
According to Ritzer (2008), that beginning the
21st century Americanization was no longer
another name for
about America as an industrial giant but more
on as a CONSUMPTION giant.
the dominant role of
United States.
Anti-Americanism as Global Process

Anti-Americanism - an amorphous concept that both opposition to US

cultural, economic, and political policies, as well as more sweeping
negative generalization about the US.
-being critical to US social, economic, political institutions, traditions,
and values
- contempt of American National Character
- the dislike of American people, manners, behavior, dress and so on
- rejection of American Foreign Policy
- a firm belief in the malignity of American influence and presence
anywhere in the world,
 1. Japanization 2. Asian
Threats to US Tigers (e.g. Singapore)
dominance: 3. European Union 4.
China
NEO-LIBERALISM

• Liberal commitment to individual liberty, a

belief in the free market and opposition to
state intervention.
• Radically individualistic.
• Often referred as “WASHINGTON
CONSENSUS”
• The idea of FREE MARKET
Deregulation-commitment by nation-states to
limit or eliminate restraints on the free market
and free trade.
Low taxes and to tax cuts.
Minimize spending on welfare and safety
net.
Idea of tax cuts for business and industry.
❑ Having a neo-liberal state where state is to be subordinate to the economy .
Privatizing various sectors; profit-making; reduce barriers; glorify virtue of free
competition.

Q: DOES NEO-LIBERALISM MADE THE STATE OR INSTITUTIONS

IRRELEVANT?

According to Harvey (2006: 28) argues that “neo-liberalism has not made the
state or particular institutions and practices of the states irrelevant. Rather, the
institutions and practices of the state have been transformed to better attune
them to the needs and interests of the neo-liberal market economy. “

CRITIQUE
Double Movement- coexistence of the laissez-faire market and the reaction against it.
 NEO-LIBERALISM

Milton Friedman – played a key role in the effort to protect traditional liberal ideas, to develop
neo-liberal theory, and to sponsor its utilization by countries throughout the world.
- helped spreading to the whole world neo-liberal ideas.

“Chicago Boys”- they spread the neo-liberal doctrine taught at Chicago by Friedman and
played a central role in it becoming policy in a number of nations.

“Shock Doctrine”- the view that a total overhaul of an economy required a shock; and the
economic policies put in place were designed to change the economy dramatically. (involves
privatization of industry, the deregulation of the economy, and the reductions in a nation’s
spending on social welfare programs).
- that’s why we should embrace neo-liberal ideas.
Shock Therapy

❖Laws and regulations were dismantled.

❖The nation’s capitalists were the main beneficiaries of the therapy.

Much of the World came to accept, or was coerced into accepting, neo-liberalism.

The International Monetary Fund (IM) and the World Bank (WB) both were heavily staffed by
the products of the Chicago Economics Department practiced a form of shock therapy
known as structural adjustment.

Structural Adjustment- in order to receive aid from these organizations, receiving nations had
to restructure their economies and societies in line with neo-liberal theory.

Neo-liberalism is often referred to as “Washington Consensus”. The term “Washington

Consensus” means “unimpeded private market forces are the driving agents of growth.
Absent was any concern in equity, redistribution, social issues, and the environment.
Neo-Liberalism: Basic Ideas

William Easterly is opposed to any form of collectivism

and state planning because it inhibits, if not destroys,
freedom.

ECONOMIC FREEDOM is related to

ECONOMIC SUCCESS
CENTRAL PLANNING is an ECONOMIC
FAILURE
Easterly offers several reasons why ECONOMIC FREEDOM is related to
ECONOMIC SUCCESS:

1. It is extremely difficult to know in advance what will succeed and what will
fail. Economic Freedom permits a multitude of attempts and failures are
weeded out.
2. Markets offer continuous feedback on what is succeeding and failing;
central planners lack such feedback.
3. Economic Freedoam leads to the ruthless reallocation of resources to that
which is succeeding; central planners often have vested interests that
prevent such reallocation.
4. Economic Freedom permits large and rapid increases in scale by financial
markets and corporate organizations.
5. Individuals and corporations are willing to take great risks; central planners
are risk-averse because of their personal vulnerability if things go wrong.
 CENTRAL IDEAS OF NEO-LIBERALISM

1. FREE MARKET- a market free of any impediments

1. FREE TRADE
2. DEREGULATION- commitment by nation states to limit or
eliminate restraints on free market and free trade.

Note: The Principles of free market are not restricted to the

economy but can be applied to every sphere of society,
including CULTURE, POLITICS, and the SOCIAL WORLD.

NEO-LIBERALIM is radically INDIVIDUALISTIC

 The Neo-liberal State

✓ The state is subordinated to the economy.

✓ The focus is on those who gain from capital accumulation (the capitalists).
✓ Commitment to LOW TAXES and to TAX CUTS.
LOW TAXES and to TAX CUTS are believed to stimulate the economy by encouraging people to earn more and ultimately to invest and to spend
more.
 Tax Cuts for business and industry, businesses would use tax savings to invests more in their operations and infrastructure, thereby generating
more business, income, and profits.
 High Profits would trickle down and benefits most people in society.

“Trickle-down Theory”- a theory that financial benefits given to big business will in return pass down to smaller business and consumers.

o Trickle Down – like domino effects theory. Everyone will benefits. Multiplier effect.

✓ Spending on welfare should be minimized and the safety net for the poor should be minimized
o 4ps/ minimum wage/ philhealth – harming the people (dependent)
The Neo-liberal State

✓ Limited Government
Wolf (2005) argues that the state must not only be limited, but its job is to cooperate with
open global market.

✓ Neo-liberal state is interested in Privatization (Transportation, Telecommunications, oil and other

resources, utilities, social housing, education)
✓ Neo-liberal state extols the virtuous of free competition. And it is opposed to, and works against,
groups, (e.g. unions, social movements) that operate to restrain business interest.

In summary, Harvey (2006) argues that Neo-liberalism has not made the state or particular
institutions (e.g. courts) of the state irrelevant. Rather, the institutions and practices of the state
have been transformed to better attune them to the needs and interests of the neo-liberal market
economy.
Critiquing Neo-Liberalism: Karl Polanyi

Karl Polanyi is the great critic of Neo-liberalism.

- If laissez-faire system is left to itself, it threatened to destroy society.

- The reaction of laissez-faire system is called “Double Movement”.
- Polanyi saw “counter-reactions” as necessary and desirable to the evils of the free market.
- Polanyi believed that collective planning and control would produce more freedom,
more freedom for all, than was the available in the liberal economic system.
Contemporary Criticisms of Neo-liberalism

Problems of Neo-liberalism

1. Neo-Liberalism assumes that everyone in the world wants very narrow and specific types
of economic well-being and political freedom.
2. Neo-Liberalism conceals or obscures the social and material interests of those who push
such an economic system with its associated technological, legal, and institutional
systems.
3. Neo-Liberalism produced financial crisis in various countries throughout the world (e.g.
Mexico, Argentina)
4. Neo-Liberalism adheres to “creative destruction”- the essence of capitalism is the need
to destroy in order to create.
5. Neo-Liberalism led to inequality, marginalization, and the lowest economic growth rates
ever recorded and in some cases negative growth.
6. Politically, Neo-Liberalism has led to the decline of the state.
In relation to our topic- GLOBALIZATION:

1. Neo-Liberalism is global in the sense that it has become an economic

and political system that characterize a wide range of societies
throughout the world.
2. Neo-Liberalism is an idea system that flowed around the world.
3. International Organizations especially the IMF, WTO, and the World Bank
as dominated by Neo-Liberal ideas and as imposing them, in the form of
various demands for restructuring.
4. Opposition to Neo-Liberalism is also global.
NEO-MARXIAN THEORIES

 Neo-Marxists have done more than critique to neo-liberalism, they have developed their
own perspectives on, and theories of, capitalism.
NEO-MARXIAN THEORIES

Transnational Capitalism
LESLIE SKLAIR DISTINGUISHES TWO
SYSTEM OF GLOBALIZATION:
1. NEO-LIBERAL CAPITALIST SYSTEM
2. SOCIALIST SYSTEM
Theories are guides in
understanding things.
Ritzer, George. Globalization:
The Essentials. 2011. John Wiley
& Sons Ltd.